Orleans Parish residents may be eligible for a new forgivable loan program through the city of New Orleans. Eligible homeowners can receive a loan of up to $35,000 to perform “Health and safety repairs” on their homes.
The loan will be for 10 years at a 0 percent interest rate with payments deferred and forgiven until the earlier of loan maturity, sale, transfer or ownership, or failure to maintain the property as the primary residence during the 10-year term.
The principal balance is reduced by 10 percent annually provided the eligible homeowner maintains primary residency. The prorated remaining balance is due
and payable immediately if the home is sold, transferred, or no longer the primary residence within the 10-year term. A lien will be placed on the home. Homeowner must maintain taxes and insurance throughout the loan period.
To be eligible, residents must:
- reside within Orleans Parish
- be a primary homeowner and existing resident of the property at least five (5) years prior to application.
- Annual Household Income must not exceed 80%of Area Median Income (AMI; adjusted for household size, limitations may apply).
- Senior households aged 55+, Military Veterans, Disabled Head of Household and those that have been in their homes for 15+ years will have priority in the program.
- Homeowners with 1st and 2nd mortgage liens are permitted, provided all mortgages are current and not in default.
- Homeowners with outstanding tax liens are ineligible for the program.
- Prior recipients of owner-occupied rehabilitation grants funded by the City of New Orleans resources within the previous five (5) years are ineligible for the program.
Eligible repairs are prioritized to address issues pertaining to health and life safety; accessibility; deferred maintenance and home exterior improvements. This is not a home remodeling program.
For more information, call the New Orleans Office of Community Development Intake Department at 504-658-4200, visit www.nola.gov/communitydevelopment or email firstname.lastname@example.org. Applications are accepted through October 30, 2019.